Transferring contracts (TOR) for subsidized price w/ no contract

Recently a coworker told me a pretty interesting method of getting new phones at subsidized prices while getting out of the 3 year contract.

- Sign a regular 3 year contract and buy phone (eg he got the Note 2 for $99)
- Find a buyer to take over the contract, he would offer cash incentives say ~$150 or so

So now he has the Note 2 for $99 + $150 completely off contract. He also did this from s2->s3->iphone5->note 2 while making profit each time when he sold each phone. I'm thinking of doing this too, however I wanted a second opinion as this seems too good to be true. My only concern is not being able to find a buyer to take over the contract but to get around this I can sign the contract only after I have a confirmed buyer. Also a bit surprised that this hasn't been discussed much on RFD (maybe I just suck at searching) because this is insanely hot if it works. What are your thoughts?

Terrible deal. What idiot will take a three year contract with no phone? Even if you pay some $150, that isn't enough to cover the cost of a smartphone off contract. In addition, why even consider it in the first place? Why should I take that deal in the first place when I could sign up for a three year contract and get a $500 phone for free, and sell it myself?

Terrible deal. What idiot will take a three year contract with no phone? Even if you pay some $150, that isn't enough to cover the cost of a smartphone off contract. In addition, why even consider it in the first place? Why should I take that deal in the first place when I could sign up for a three year contract and get a $500 phone for free, and sell it myself?

You need to con someone into taking that deal.

+1, you'll have to find some pretty gullible people to pull this off unless you're managing to get some sweet retentions plans in the process. Even then, for someone to take on a 3 year contract without a new phone would be stupid.

+1, you'll have to find some pretty gullible people to pull this off unless you're managing to get some sweet retentions plans in the process. Even then, for someone to take on a 3 year contract without a new phone would be stupid.

Yes I know, I was skeptical too which is why I wanted to check here to see if it worked. Though as I said he managed to pull this off (somehow) like 3 times in 6-8 months, every time a new high end phone came out. The only way I see this working (and it's a bit of a stretch) is if you already had a phone and just needed the plan, taking $150 is almost 3 months free. Guess he must have been bsing hardcore then

With tightening down on retention plans and TOR's and credits on transfer, It won't be as easy, but then again misinformed ppl may take up offer.

But at what cost, your buddy is not disclosing all:

* open a new line, = a credit inquiry on your credit report ( to many request's can lower your score, and affect your credit )
* Must keep line for minimum 30 days before being able to TOR
* and any all billing prior to TOR is his repsonsibility ( aka 1 month service-30 days , activation fee ( $35 ) , etc )
* paying person $150 to take over......hmmm he takes note 2 with data, I want plan but no data he will have to cancel data pay the data cancellation fees

Yes still makes a good prophit. But this method is getting harder by the day now.